Funding is from the C$691 million in federal funds the government has pledged to improve VIA Rail services throughout Canada.

"This government's support of VIA Rail, through the Economic Action Plan, will create skilled jobs and stimulate the economy across Canada," said Minister of State Rob Merrifield. "We are pleased to be taking action that will provide faster, more frequent, more reliable passenger rail service across Canada."

The refurbishment will take place at the company’s facility in Moncton, formerly a locomotive repair and rebuild shop for Canadian National.